Ex-China hot dip galvanized (HDG) offer prices have moved up sharply in the past week, following a rising trend in the previous week. Offers are at $655-700/mt FOB for late January delivery this week, edging up by $15-35/mt on average compared to one week ago amid rising ferrous metal futures prices, increasing local HDG prices, the appreciation of the Chinese currency and tight supply.
Deal prices have been heard at $645-660/mt FOB, mostly to South America, and a few deals have been heard to the Middle East, edging up by $15-20/mt compared to the previous week.
“Tight supply of HDG caused products to mostly meet the demand from local buyers, and so there has been limited HDG supply to the export market,” an international trader said.
During the given week, HDG prices have increased sharply amid the big rises in ferrous metal futures prices and much stronger HRC prices. Meanwhile, supply of HDG has been tight, bolstering prices amid high costs. At the same time, inventory has been at relatively low levels, exerting a positive impact on the HDG market.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 140/mt ($21.1/mt) week on week to RMB 5,110/mt ($771.5/mt) ex-warehouse, according to SteelOrbis’ information.
As of November 12, HRC futures prices at the Shanghai Futures Exchange are standing at RMB 3,923/mt ($592.3/mt), increasing by RMB 21/mt ($3.2/mt) or 0.54 percent since November 5.
$1 = RMB 6.6236